Good morning, traders. We saw pretty much everything I said we would see this weekend -- Price eased through $10,000 just like it did at $6,000, it topped out around $11,200-$11,300 depending on which exchange you were watching (I mentioned a target of at least around $11,084 based on the pennant's flagpole height), and we saw strong volatility as price dropped $1200 and then $850, both suddenly. So far, the $10,000 level has held as support as I have been saying was likely once we got above it.
Since the initial move above $11,000, and subsequent drop to $10,000, on Saturday, price has continued to print a TR. While there still seems to be a good bit of supply around $11,200, we can also see that slightly less effort was expended on the second drop which produced significantly less result. In other words, although there was a strong market desire to sell at that level, the demand that's showing up at $10,000-$10,7000 level is quite strong as well and buying up all that selling. Also important to note is that the volume on the first drop was only slightly more than the large demand spike about 14 hours prior and resulted in a very small candle body thereby suggesting that we still have higher to go. We can see price printing higher lows toward that upper resistance at this time.
The 4H RSI shows us that back-to-back hidden bullish divergences printed. This is to be expected, as I have mentioned before, because of the large, sudden drop seen on Saturday. We can see that Stoch RSI is still oversold and RSI is now below overbought, though remains strongly bullish and is rising once more. We haven't really seen any Springs print during these reaccumulations on the way up, so we may not see one again this time around. However, that isn't a guarantee and we could still see price dip below the bottom of the TR. At this time, as mentioned above, price is printing higher lows so my immediate thought is that we will not see a Spring but, instead, will continue higher. Price has continued to move within the ascending blue channel that it has been printing since the mid-$8000s but because we don't have four alternating touches to the channel's support and resistance, it is not confirmed yet. Price has remained above the 21 EMA so far and is currently above the most recent 4H pivot. Notice that the top of the 2018 TR is at the 4H R1 pivot. The safest entry would be a break above the recent swing high of $11,286.80 (on Kraken).
At this time, I am still expecting a move up to the lower-$14000s before a deeper correction, most likely back down to $11,500-$12,000. This would take price to the 2018 descending wedge target. Furthermore, such a move has the increased likelihood to see price reach the ATH area before completing a larger pullback and then proceed toward $22,500 at least. However, because of the FOMO expected once price leaves the 2018 TR resistance at $11,780, we could see price reach higher targets at each point before retracing a bit. So, as I continue to warn, traders should be utilizing strict, intelligent risk management while also suppressing their urge to FOMO. If price happens to drop, then I would be looking for a bounce around $9300/$9500. As always, I will be discussing this and more in this morning's YouTube video (link is below).
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
Since the initial move above $11,000, and subsequent drop to $10,000, on Saturday, price has continued to print a TR. While there still seems to be a good bit of supply around $11,200, we can also see that slightly less effort was expended on the second drop which produced significantly less result. In other words, although there was a strong market desire to sell at that level, the demand that's showing up at $10,000-$10,7000 level is quite strong as well and buying up all that selling. Also important to note is that the volume on the first drop was only slightly more than the large demand spike about 14 hours prior and resulted in a very small candle body thereby suggesting that we still have higher to go. We can see price printing higher lows toward that upper resistance at this time.
The 4H RSI shows us that back-to-back hidden bullish divergences printed. This is to be expected, as I have mentioned before, because of the large, sudden drop seen on Saturday. We can see that Stoch RSI is still oversold and RSI is now below overbought, though remains strongly bullish and is rising once more. We haven't really seen any Springs print during these reaccumulations on the way up, so we may not see one again this time around. However, that isn't a guarantee and we could still see price dip below the bottom of the TR. At this time, as mentioned above, price is printing higher lows so my immediate thought is that we will not see a Spring but, instead, will continue higher. Price has continued to move within the ascending blue channel that it has been printing since the mid-$8000s but because we don't have four alternating touches to the channel's support and resistance, it is not confirmed yet. Price has remained above the 21 EMA so far and is currently above the most recent 4H pivot. Notice that the top of the 2018 TR is at the 4H R1 pivot. The safest entry would be a break above the recent swing high of $11,286.80 (on Kraken).
At this time, I am still expecting a move up to the lower-$14000s before a deeper correction, most likely back down to $11,500-$12,000. This would take price to the 2018 descending wedge target. Furthermore, such a move has the increased likelihood to see price reach the ATH area before completing a larger pullback and then proceed toward $22,500 at least. However, because of the FOMO expected once price leaves the 2018 TR resistance at $11,780, we could see price reach higher targets at each point before retracing a bit. So, as I continue to warn, traders should be utilizing strict, intelligent risk management while also suppressing their urge to FOMO. If price happens to drop, then I would be looking for a bounce around $9300/$9500. As always, I will be discussing this and more in this morning's YouTube video (link is below).
Every day, we have a choice to act positively or negatively, so if you get a chance, do something decent for someone today which could be as simple as sharing a nice word with them. You just might change their day, or even their life.
You can always click on the "share" button in the lower right hand of the screen, under the chart, and then click on "Make it mine" from the popup menu in order to get a live version of the chart that you can explore on your own.
